Advanced biofuel trade groups ask for extension of tax incentives

March 24, 2014

BY The National Biodiesel Board

A group of biofuel trade organizations today sent a letter to Senate Finance Committee Chairman Ron Wyden, D-Ore., and ranking member Orrin Hatch, R-Utah, encouraging extension of critical advanced biofuel tax incentives—the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit. The trade groups signing the letter included the Advanced Ethanol Council, Advanced Biofuels Association, Algae Biomass Organization, Biotechnology Industry Organization, Growth Energy, National Biodiesel Board, and Renewable Fuels Association.

The letter reads, in part, “The advanced biofuels industry is at a critical stage of development. Despite a difficult financial market, we are now operating commercial plants across the country and continue to make progress on dozens of additional projects in the final stages of development. Advanced biofuel tax credits have allowed the biofuels industry to make great strides in reducing the cost of production and developing first-of-kind technologies to deploy the most innovative fuel in the world.

“As leaders in a critical innovation sector in the United States, we are well aware of the financial constraints facing this country. However, the United States’ global competitors are offering tax incentives for advanced biofuels and in fact are attracting construction of new facilities—and associated high-skilled jobs. If Congress wants American companies to continue developing these homegrown technologies in the United States, it must extend these credits. Biofuel producers are also competing with incumbent fossil energy industries who continue to enjoy tax incentives on a permanent basis.

Advertisement

Advertisement

“In the interests of energy security, job creation, global competitiveness, and forward-looking policy, we urge you to move quickly to extend expired advanced biofuel tax provisions for multiple years retroactive to January 1.” 

Advertisement

Advertisement

Related Stories

The European Commission on July 28 approved a €36 million ($41.07 million) Danish state aid scheme designed to encourage airlines operating in Denmark to use sustainable aviation fuel (SAF) on domestic routes.

Read More

The abrupt closure announcement by Biox Corp. is the latest example of a failure to secure Canada's domestic energy supply, says Unifor. The Canadian energy union is advocating for simply regulatory changes that could help restart the facility.

Read More

The U.S. EPA on July 29 released a proposed rule to repeal the agency’s 2009 Endangerment Finding, which forms the legal basis for the agency’s GHG regulations. The proposal also aims to repeal all GHG regulations for motor vehicles and engines.

Read More

While final IRS guidance is still pending, the foundation of the 45Z program is well defined. Clean fuel producers should no longer be waiting; they can now move forward with critical planning and preparation, according to EcoEngineers.

Read More

The IRS on July 21 published a notice announcing the 2025 calendar-year inflation adjustment factor for the Section 45Z clen fuel production credit. The resulting adjustment boosts maximum the value of the credit by approximately 6%.

Read More

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement